Anyone know anything about pensions? ....just starting new job.....

[blossomsmine]

......i have been sent a pack from Axa where i can sign up for a pension scheme.

Haven't a clue about these things!!! I haven't got anything sorted out for myself, pensions, savings or anything!!!

It calls itself a Group stakeholder pension scheme and it says that i would contribute between 3.5% to 7.5% and the employer matches the 3.5% to 7.5%. It then says total contributions 7% to 15%....i don't get that bit!!

This is a part time job, to start with, i am hoping to increase hours once i start. So obviously i am not earning a great deal to start with!!

Any help with this would be fantastic as i have to send the form back asap and i haven't a clue!!

Thanks

if you have no pension at all then it is always worth signing up to thse things, by the time your employer and the govt. have put their bit in (tax relief on the govt.'s part) then you get generally a lot more out than you put in.

and the younger you are the better.

and with teh stock market low right now there is more chance of your pension going up when it recovers.

Thank you for replying fluffles I need to get this in the post and i have been so confused as what to do!

I have been worried about paying the money each month, do they take say, 3.5% of your monthly salary and then deduct tax relief and then take that amount? But then i was worried because there has been so much talk about people losing out with pensions lately, or have i not been listening properly??!!

Also, i am not very young I am 42, so is that too old, do you think?

they take the % of your gross, then treat what's left as your taxable/NI'able salary.

the 7-15% thing is min-max (ie you chose 3.5, they add 3.5 = 7, you choose 7.5, they add 7.5 = 15)

...oh i don't get that chasingsquirrels....i get so confused with numbers

Would you say its worth doing then?

Thanks for replying.

it depends how you feel about pensions, but effectively if you do it you are getting an increase in your salary of between 3.5-7% (depending on how much you contribute).

I don't really know how i feel about pensions...?? But i think i need something for the future. So really i should do it i suppose because it means i will have something when i retire i suppose.